Regulation A; Tier 2 Equity Crowdfunding Explained

October 7, 2016

Regulation A, Regulation A+, Tier 1 Equity Crowdfunding, Tier 2 Equity Crowdfunding are among the many terms, concepts and topics that require explanation for those seeking to raise money via crowdfund campaigns. Towards helping entrepreneurs, service providers and others in the business of raising capital, RaiseMoney.com provides not only a global search directory aka yellow pages for best crowdfund platforms, but insight and resources profiling rules associated with the various components of the new SEC Regulation A+ laws for equity crowdfund campaigns, as of November 2015

Reg A+ Tier 1

Raise up to $20M in a 12 month period

No more than $6M can be offered for sale from affiliate security holders

Affiliates are also precluded from selling more than 30% of internal shares in the Reg A+ offering

Requires PCAOB or GAAP audited financial statements for the previous two years

Preempts necessity of adhering to state BlueSky laws

Allows solicitation to and investment from both accredited and non-accredited investors

By preempting most state blue sky laws, Tier 2 Regulation A+ allows issuers to generally solicit and sell securities to both accredited and non-accredited investors via nearly any medium including email, social media, telemarketing and broadcast television.

What is the expected cost of a Regulation A+ Offering? Click here for the answer.